France's competition authority has ruled that Apple must immediately cease its relationship with France Telecom's Orange where it has exclusive rights to sell Apple's iPhone in France and allow other local carriers to offer the iPhone to its subscribers.
The watchdog has cited that Apple's exclusive arrangement with Orange poses a serious and immediate threat to competition in the wireless sector.
Orange is currently the exclusive carrier of Apple's iPhone in France and today's ruling by France's competition authority puts this 13 months relationship under threat.
France's third largest mobile operator Bouygues Telecom had filed a complaint with the watchdog regarding the deal between Apple and its larger rival, French Telecom. They argued that it violated freedom of competition and pricing laws in France.
Based on its initial investigation, France's competition authority seems to agree and has given a temporary judgement in favor of Bouygues as a precautionary measure while the watchdog continues to investigate the merits of Bouygues' claims.
It believes that Apple's exclusive arrangement with Orange to sell iPhone in France "by nature introduces a new factor of rigidity in a sector that already lacks competition."
As per the ruling, Apple and French Telecom are also prohibited from entering into any other exclusive agreements for new iPhone models during the precautionary period.
Folks at Bouygues Telecom are pleased with the judgement and have applauded the regulator's decision. On the other hand, French Telecom plans to appeal the decision.
We will let you know the final outcome of the competition authority's investigation.
[via Apple Insider]
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Bravo to the French!
America, the champion of free markets, allows practices that are totally anti competition.
If Apple wishes to keep the iPhone as the number one object of desire they should make it available thorugh other carriers. Other phones will be made and Apple will lose the edge.
Remember the Apple II and the fisrts Mac. If they are satisfied with 10% market share then it is OK to continue with this policy of closeness driven by greed.
Wake up Apple!
The French have a backbone? I am shocked and wish that America would follow suit on this one. Really, there is no good reason that any phone company should be allowed to use only one phone provider.
I love the French. Apple can get by with greedy monopolistic practices in America and elsewhere but at least one country cares about consumer rights. I hope one day Apple will realize that anti co,mpetitive practices are not the way to go. Continue producing the best products without making your customers feel like your are Stalin, controlling our ever purchase and you will have our loyalty.
Viva la France .. the world learned the meaning of the freedom from the French. They are such a perfect example of what freedom really is. SET THE IPHONE FREE!